Well, if you look in BOL, error 701 says:
There is insufficient system memory to run this query.
Can you tell us a bit more about your environment (Windows OS, SQL Server Version, RAM, RAM allocated to SQL Server)? What about your backup plan; how often are you running the log backups? Do you get a 701 every time? What else is happening on your system when you get the error during the backup?
John Rowan
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